Module 5 Economic Unit 7 Quiz

Buying a cell phone is very expensive, but cell phones probably do not cost all that much to make. Which is the best reason to explain why cell phones cost a lot for people to buy?

• They are made from cheap materials.

• People are willing to pay the high cost.

• The taxes are high on cell phones.

• Cell phones are hard to find.

Read the passage to answer the question.

A person is shopping at a grocery store. A worker is putting boxes of cereal on a shelf. Another worker is behind the meat stand cutting beef. When the customer finished paying for groceries, a third worker puts them in bags.

Which term best describes this situation?

• Comparative advantage.

• Opportunity Cost.

• Supply and Demand.

• Division of Labor.

How does the scarcity of resources impact the price of goods?

• It causes prices to go up.

• It causes prices to fluctuate up and down.

• It causes prices to go down.

• It causes prices to remain the same.

Imports and exports are important to our nation′s economy. Why is that?

• A. Not all countries have the resources to produce goods and services.

• B. It is important for the growth of our country to trade with other nations.

• C. We do not like to buy products made in the United States.

• Both A and B.

What happens to the price of a product when the supply of the product goes down?

• Price goes down when the supply goes down.

• Price goes up when supply goes down.

• Price stays the same no matter how much is available.

• None of these.

What do people compare when they are making a choice?

• Buying and Selling

• Expenses and Resources

• Supply and Demand

• Costs and Benefits

Producers make or supply goods or services. Identify a producer in your community.

• A person borrowing a book from the library.

• A person buying food from the grocery store.

• A person baking bread at a bakery.

• A person riding a bike.

Goods and services that buyers choose to buy when they could comfortably live without them are _______ . These may include things like fancy cars, cell phone, or vacations.

• Specialization

• Taxes

• Needs

• Wants

A person opens up a cupcake store. The business is not doing so well. What might the person want to change to increase sales and make more money?

• Location of store.

• Advertising.

• Price of cupcakes.

• All of these.

What time of the year would you probably find the lowest prices on winter clothing?

• Beginning of winter.

• Middle of winter.

• Summer.

• Prices are the same all year round.